Question

Daniel, his parents, and three brothers own all the stock of their family farm corporation and each person takes an active role in managing the enterprise. This corporation, which is taxed as a corporation, is most likely a. a professional corporation. b. a close corporation. c. an S corporation. d. a proprietorship.

Answer 1

Answer:

b. a close corporation

Explanation:

A closed corporation has the following characteristics:

1. It is owned by a few people

2. It is taxed as a corporation

3. The shareholders run the business.

A s corporation has the following characteristics:

1. It has a maximum of 100 shareholders

2. It is taxed as a partnership

A sole proprietorship has the following characteristics:

I. It is owned by one person

2. The owner has unlimited liabilities.

I hope my answer helps you.